Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
November 21, 2005 01:00 AM

Soaring resin prices help out bio-plastics

Frank Esposito
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    The door is opening for bio-based plastics, pushed by higher prices for petroleum-based resins and improved performance from plastics made from natural resources.

    But the events of the next year or two will determine if that door opens wider or shrinks to a crack revealing only an eco-friendly niche market.

    Speakers at Commercializing Bioresins 2005, a conference held Nov. 7-9 in Atlanta, tackled the topic, combining issues as diverse as recycling, corn prices and consumer preferences.

    All agreed the global bio-based resins market is set to grow. Global capacity is around 800 million pounds today, but based on announced projects, is set to top 1.3 billion pounds by 2008, according to Harald Kaeb, chairman of Biologisch Abbaubare Werkstoffe eV (IBAW), a Berlin-based international trade group of bio-based plastics makers and users.

    IBAW's membership includes materials makers BASF AG and PolyOne Corp., as well as consumer giants Groupe Danone, Procter & Gamble Co. and Kraft Foods Inc. Other companies incorporating bio-based plastics into their products, according to Kaeb, are Sony Corp. and Nestle AG.

    Prices for two major types of bio-based resins - polylactide and aliphatic aromatic copolyester - also have dropped considerably since 1999, bringing them closer to those of commodity plastics, said Greg Bohlmann, assistant director of the process economics program at SRI Consulting in Menlo Park, Calif.

    Commodity resin prices have climbed steadily since 2003 as oil and natural gas prices have surged.

    ``Historically, pricing had been the biggest barrier,'' Bohlmann said. ``And new technology should further allow [bio-based resin makers] to reduce costs.''

    Bohlmann added that using materials such as corn stover, wheat straw and rice straw - which remain in fields after crops are harvested - as resin feedstocks also could increase productivity and economic performance.

    The Department of Agriculture is doing its part to aid growth of the bio-based resin market by proposing 36 agricultural products for its list of approved environmentally sustainable products. The first six of those were approved in July, according to Marvin Duncan, a senior agricultural economist with the department.

    Products on the list can be used in urethane coatings for roofs and coatings for water tanks, as well as in bedding, bed linens and towels.

    ``The petrochemical industry has told us that the U.S. may not be world-competitive on oil and natural gas,'' Duncan said. ``But we will be on bio-based sources.''

    A recent survey of more than 100 American investors and research analysts - conducted by Daniel Robin of Santa Cruz, Calif., investment firm Integrated Investments International Inc. - showed some confusion over the terminology used in the bio-based resin industry.

    However, the survey also showed a growing interest in the field among venture capital and private equity firms. In the second quarter of 2005, $370 million - about 6 percent of all U.S. venture capital investment - went into bio-based resins and other so-called ``clean technology'' companies.

    ``Bio-resin ventures are ripe for investment because of the coming together of technological, environmental and economic forces,'' Robin said.

    To date, proof of the success of products made from bio-based resins can be found more easily in Europe, where packaging distributor NNZ BV has seen increased demand for its Okopack-brand line of bioplastic films, trays and netting.

    ``Some customers want to use [Okopack] because it's bio, some want to use it because it increases shelf life - they don't care if it's bio,'' said Atussa Sarvestani, biodegradable packaging manager with NNZ, which is based in Groningen, the Netherlands.

    RECOMMENDED FOR YOU
    Tooling focus gives Berry another avenue for growth
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    PVC feedstock in train derailment prompts evacuation in Ohio
    2
    Material Insights: Resin prices rise, nonmarket correction for PE
    3
    Illinois AG sues 14 firms over PFAS contamination
    4
    Prices on the rise for PP, PVC
    5
    This is the year the reality of plastics EPR arrives in the US
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified